PYDIMARRI VENKATESWARLU Vs. PYDIMARRI JALAMMA

JUDGEMENT

(1.) This revision petition arises out of I. P. 12/61 on the file of Sub-Court, Kavali, an insolvency petition filed by the respondent against the petitioner.

(2.) The allegations in the petition are that the petitioner executed a promissory note for a sum of Rs. 3950 on 27-10-1959 in favour of the respondent comprising of Rs. 3500 paid by the respondent in cash before the Sub-Registrar and the balance of Rs. 450 subsequently taken by the petitioner from the respondent. It was agreed at the time of execution of the promissory note that the petitioner will not alienate the schedule mentioned property, Contrary to that the petitioner alienated the schedule mentioned property in favour of several persons including one Satyanarayana and others. The respondent believes it to be true that the property was also sold in auction several times. The petitioner except the house at Kanigiri and the same is worth Rs. 12,000 and he owes debts to the tune of Rs. 16,000 to Rupees 17,000 to the creditors.

(3.) The petitioner is unable to discharge the same and has been making an attempt to screen his properties in the name of his partisans. The respondent learns and believes it to be true that the petitioner has sold the schedule mentioned house at Kangiri under a registered sale deed dated 20/04/1961 in favour of his natural brother Pydimarri Bala Venkata Subbaiah fraudulently and with a view to delay and defraud the creditors. It was also alleged that the sale was without any consideration. The recitals therein that the respondent was being paid Rs. 4200.00 and respondents husband Rs. 1500 by the vendee. are all not true or correct. The other debts mentioned in the document are also not true. The respondent therefore, submitted that the petitioner had committed on act of Insolvency under S.6 of the Provincial Insolvency Act (hereinafter referred to as the Act) having transferred the only property owned by him or a substantial portion of his property and is, therefore, liable to be adjudicated insolvent.